Thread: Buying Oil
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Old 02.02.2015, 18:02
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Re: Buying Oil

buying oil is tough, because it's not meant for individuals like us. If you wanted to buy oil for real, you would need to buy a Future on the Nymex, let it expire, get delivered 1000 barrels of the greasy and stinky liquid. Delivered means go to Oklahoma and load your oil in your truck from the official delivery point.
Of course no ones does this, but people buy Oil ETFs instead. They're funds that replicate the price of oil, minus the costs of getting the oil actually delivered. Those costs are very high, you can add on top the fees from the fund manager (also high...)
The cheapest way is to buy the futures and roll them each quarter, paying the cost of carry on roll day but you can't just buy and forget about them (otherwise be ready to book a flight to Oklahoma!)
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